Gold prices skyrocketed to an all-time high of $2,265.49 per ounce on Monday as softer-than-expected U.S. inflation data solidified speculations surrounding an impending interest rate cut by the Federal Reserve.
Spot gold surged by 1.2% to $2,258.12 per ounce by 0529 GMT, with U.S. gold futures also experiencing a significant gain of 1.8% to reach $2,279.10.
Federal Reserve Chair Jerome Powell's remarks regarding U.S. inflation being "along the lines of what we would like to see" further fueled market expectations of a rate cut. Traders have now priced in a substantial 69% probability of a rate cut by the Fed in June.
The surge in gold prices underscores investors' growing concerns over inflationary pressures and their anticipation of accommodative monetary policy measures by the central bank.
With gold hitting record highs, market participants remain on edge as they closely monitor economic indicators and Fed announcements for further signals regarding the trajectory of monetary policy and its impact on financial markets.
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